What Are Real Estate Disclosures? What Sellers & Buyers Need to Know

February 18, 2025

When buying or selling a home, real estate disclosures play a crucial role in ensuring transparency and fairness. But what exactly are disclosures, and why do they matter? This guide will break down what home sellers are required to disclose, what buyers should look for, and how these documents impact a real estate transaction.

What Are Real Estate Disclosures?

Disclosures are legal documents that inform potential buyers about known issues with a property. These issues could include structural problems, past damage, or environmental hazards. The goal is to provide full transparency so that buyers can make informed decisions.

Why Do Sellers Need to Disclose?

Sellers are legally obligated to disclose certain facts about a home to prevent misrepresentation. Failing to do so can lead to legal disputes, financial penalties, or even lawsuits.

In most states, including Oregon, there are specific seller disclosure requirements that must be followed. If you’re selling a home in Oregon, be sure to check state laws or consult with a real estate agent to ensure compliance.

Common Real Estate Disclosures (What to Expect)

While disclosure requirements vary by state, some of the most common issues sellers must disclose include:

  • Structural problems: Foundation cracks, roof leaks, or other major defects.
  • Water damage & mold: Past flooding or mold growth should always be disclosed. Learn more about dealing with mold in our post: Scared of Mold? Your Agent is Here to Help
  • Pest infestations: History of termites, rodents, or other pest issues.
  • Legal or zoning issues: Property line disputes, easements, or unpermitted renovations.
  • Environmental hazards: Lead paint, asbestos, radon, or nearby hazardous waste sites.

What Happens If a Seller Doesn’t Disclose?

If a seller fails to disclose known issues, they can face serious consequences, including:

  • Legal action from the buyer for damages or repairs.
  • Financial penalties for failing to meet disclosure requirements.
  • Delayed or canceled sales if issues are discovered during inspections.

How to Review Disclosures as a Buyer

As a buyer, it’s important to thoroughly review all disclosures provided by the seller. Here’s what you should do:

  • Read the disclosure statement carefully and ask questions about anything unclear.
  • Get a home inspection to verify the condition of the property.
  • Consult a real estate professional if you’re unsure about any disclosures or potential red flags.

Learn More About Real Estate Terminology

Understanding real estate jargon can make the disclosure process easier. Check out our Real Estate Glossary of Terms to familiarize yourself with common terms.

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